Latest news with #InfrastructureSolutionsGroup
Globe and Mail
6 days ago
- Business
- Globe and Mail
Can AI Momentum Power Dell Stock Beyond $179 Again?
Shares of Dell Technologies (DELL) hit an all-time high of $179.70 on May 29, 2024. However, the rally didn't last, and the stock has dropped roughly 36% since then, as broader concerns about an economic slowdown and reduced enterprise IT spending rattled investors. While macroeconomic uncertainty persists, Dell's fundamentals remain solid, with the company delivering strong financial results driven by artificial intelligence (AI) demand. Moreover, Dell stock is trading at a compelling valuation, which will likely support its share price. Let's take a closer look. AI Demand: Dell's Growth Engine Dell's recent quarterly earnings reflect the strength of the AI tailwind for the company. In its first quarter of fiscal 2026, Dell's Infrastructure Solutions Group's (ISG) revenue was $10.3 billion, up 12%. The company witnessed significant demand for AI servers. Thanks to the solid demand trends, Dell's earnings per share (EPS) of $1.55 jumped about 17% year-over-year, much faster than its revenue growth rate. The company recorded $12.1 billion in AI-related orders during the quarter, which was more than what it shipped in the entire previous fiscal year. Actual shipments for the quarter came in at $1.8 billion, leaving Dell with a significant backlog of $14.4 billion. Notably, demand is showing no signs of slowing, with a solid and growing pipeline across cloud service providers and enterprise customers in multiple sectors. While Dell is seeing solid demand, the company is rapidly deploying large-scale AI server clusters, supporting its growth. Dell's end-to-end support services, including managed services and flexible financing options, enable customers to scale their AI infrastructure and, in turn, drive the company's financials. Looking ahead, Dell is doubling down on AI. It's enhancing its AI Factory approach, providing the compute, storage, networking, and software foundation needed to power next-gen AI applications. Innovations span from AI-capable PCs to cutting-edge data center platforms. Over the past quarter alone, Dell has expanded its portfolio with Copilot+ capable AI PCs, upgraded notebooks and desktops powered by Nvidia's (NVDA) RTX Pro Blackwell GPUs, and new Intel (INTC) and Advanced Micro Devices (AMD) processors. On the server side, Dell is expanding with air-cooled and liquid-cooled platforms designed to reduce energy costs and enhance performance in AI-intensive environments. The company's new AI Data Platform is another growth catalyst. Dell is offering high-speed, scalable storage solutions and advanced software integrations that will support future financial growth. Further, Dell's growing network of partners is another strategic advantage. Collaborations with tech leaders to bring AI models on-premises and simplify on-premises deployment of agentic AI is strengthening its position in the AI space. Dell is also innovating in the private cloud segment, introducing platforms that make it easier for enterprises to deploy and manage AI workloads efficiently. These initiatives will ultimately drive Dell's revenue and earnings, supporting its share price. Dell Stock Trades at Attractive Valuation While Dell is consistently delivering solid financials and is poised to benefit from strong AI demand, its stock is still trading at a very reasonable valuation. Dell stock has a forward P/E ratio of just 13.7x, and its price-sales (P/S) ratio sits at 0.83x. For a company growing as quickly as Dell, those numbers are hard to ignore. Since FY21, the company's earnings per share (EPS) have grown at a compound annual growth rate (CAGR) of 14%. Moreover, the company's management projects FY26 adjusted EPS to increase by 15%. Its reasonable valuation, double-digit earnings growth rate, and AI tailwinds suggest further upside in DELL stock. Here's What Analysts Recommend for Dell Stock Wall Street analysts remain optimistic about Dell's future and have a "Strong Buy" consensus rating. The average price target of $131.87 suggests 16% upside from current levels. Moreover, the Street-high price target of $155 represents a 37% potential gain from current levels. Can Dell Stock Surpass $179? With strong financials, double-digit earnings growth, and a foothold in the high-growth AI space (with $14.4 billion in backlog) — all at a reasonable valuation — Dell stock has plenty of room to run and could very well reclaim and surpass its previous high of $179.70.
Yahoo
6 days ago
- Business
- Yahoo
Compared to Estimates, Dell Technologies (DELL) Q1 Earnings: A Look at Key Metrics
Dell Technologies (DELL) reported $23.38 billion in revenue for the quarter ended April 2025, representing a year-over-year increase of 5.1%. EPS of $1.55 for the same period compares to $1.27 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $23.14 billion, representing a surprise of +1.04%. The company delivered an EPS surprise of -9.88%, with the consensus EPS estimate being $1.72. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Dell Technologies performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Net Revenue- Client Solutions Group: $12.51 billion versus the three-analyst average estimate of $12.40 billion. The reported number represents a year-over-year change of +4.5%. Net Revenue- Infrastructure Solutions Group: $10.32 billion versus $10.26 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +11.8% change. Net Revenue- Client Solutions Group- Consumer: $1.46 billion compared to the $1.74 billion average estimate based on three analysts. The reported number represents a change of -19.3% year over year. Net Revenue- Infrastructure Solutions Group- Storage: $4 billion compared to the $3.93 billion average estimate based on three analysts. The reported number represents a change of +6.3% year over year. Net Revenue- Client Solutions Group- Commercial: $11.05 billion compared to the $10.66 billion average estimate based on three analysts. The reported number represents a change of +8.8% year over year. Net Revenue- Infrastructure Solutions Group- Servers and networking: $6.32 billion compared to the $6.33 billion average estimate based on three analysts. The reported number represents a change of +15.6% year over year. Operating Income- Client Solutions Group: $653 million versus the two-analyst average estimate of $696.04 million. Operating Income- Infrastructure Solutions Group: $998 million versus $1.13 billion estimated by two analysts on average. View all Key Company Metrics for Dell Technologies here>>>Shares of Dell Technologies have returned +24% over the past month versus the Zacks S&P 500 composite's +6.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dell Technologies Inc. (DELL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
23-05-2025
- Business
- Yahoo
Dell Technologies Inc. (DELL) Target Lifted to $126, Analysts Expect Modest Q1 Beat
We recently published a list of . In this article, we are going to take a look at where Dell Technologies Inc. (NYSE:DELL) stands against other AI stocks that are making waves this week. Dell Technologies Inc. (NYSE:DELL) provides IT solutions, including servers, storage, networking, and personal computing devices, to businesses and consumers worldwide. On May 21, Morgan Stanley kept its 'Buy' rating on the stock and raised its price target from $89 to $126 ahead of Dell's Q1 Fiscal 2026 earnings due on May 29. The firm anticipates modest outperformance for Dell's April quarter. However, it believes that the full-year guidance will remain unchanged. The firm has reason to believe so, based on Dell's strong demand for AI infrastructure and mixed results in traditional hardware and tariffs uncertainty. A team of IT experts discussing the latest network security trends over a laptop screen. Dell's AI server business looks strong regardless of the mixed results. An estimated $2.3 billion in revenue is expected for the April quarter and nearly $20 billion in visibility for Fiscal 2026. That said, the July quarter growth will largely depend on how Dell can manage its supply. The firm also noted market share gains in Dell's Infrastructure Solutions Group, while its Client Solutions Group is also anticipated to perform better in the first half of the year. All these factors have led the firm to anticipate a small upside for Q1 results. The stock has been performing well recently, but may pause following earnings. Nevertheless, the firm remains positive about the second half of the year. Overall, DELL ranks 7th on our list of AI stocks that are making waves this week. While we acknowledge the potential of DELL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DELL and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
Dell Technologies Inc. (DELL) Target Lifted to $126, Analysts Expect Modest Q1 Beat
We recently published a list of . In this article, we are going to take a look at where Dell Technologies Inc. (NYSE:DELL) stands against other AI stocks that are making waves this week. Dell Technologies Inc. (NYSE:DELL) provides IT solutions, including servers, storage, networking, and personal computing devices, to businesses and consumers worldwide. On May 21, Morgan Stanley kept its 'Buy' rating on the stock and raised its price target from $89 to $126 ahead of Dell's Q1 Fiscal 2026 earnings due on May 29. The firm anticipates modest outperformance for Dell's April quarter. However, it believes that the full-year guidance will remain unchanged. The firm has reason to believe so, based on Dell's strong demand for AI infrastructure and mixed results in traditional hardware and tariffs uncertainty. A team of IT experts discussing the latest network security trends over a laptop screen. Dell's AI server business looks strong regardless of the mixed results. An estimated $2.3 billion in revenue is expected for the April quarter and nearly $20 billion in visibility for Fiscal 2026. That said, the July quarter growth will largely depend on how Dell can manage its supply. The firm also noted market share gains in Dell's Infrastructure Solutions Group, while its Client Solutions Group is also anticipated to perform better in the first half of the year. All these factors have led the firm to anticipate a small upside for Q1 results. The stock has been performing well recently, but may pause following earnings. Nevertheless, the firm remains positive about the second half of the year. Overall, DELL ranks 7th on our list of AI stocks that are making waves this week. While we acknowledge the potential of DELL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DELL and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
22-05-2025
- Business
- Yahoo
Dell Joins Forces with Nvidia to Launch Faster AI Servers
On May 19, Dell Technologies (NYSE:DELL) announced plans to join hands with NVIDIA Corporation (NASDAQ:NVDA) to launch new and better AI servers powered by the latter's Blackwell Ultra chips. The collaboration aims to capitalize on the booming demand for AI systems. According to Dell Technologies (NYSE:DELL), these severs hold the potential to train AI models as much as four times faster than the previous models. A technician standing in front of a wall of servers, managing the public wireless network. The servers are available in two variants: liquid-cooled and air-cooled, and can support up to 192 Nvidia Blackwell Ultra chips. However, they can be customized to contain up to 256 chips. Reuters reported that Arthur Lewis, President of Dell's Infrastructure Solutions Group, expects the pricing of these products to be "competitive," saying that "there's a lot of interest on what's next". While we acknowledge the potential of DELL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DELL and that has 100x upside potential, check out our report about the . READ NEXT: and . Disclosure: None. Sign in to access your portfolio
